On Thursday, neither a Democratic nor a Republican bill got the 60 votes needed to overcome a filibuster.

Why student loans are more affordable

The Democratic bill would be a replay of last year, extending the 3.4% interest rates for another two years.

The Republican bill resembles a House-passed bill last month that would stop the rates from doubling by tying them to 10-year Treasury notes. Under that plan, rates would remain relatively low now, but would grow as the economy improves and interest rates rise.

The impending July 1 rate hike will only affect undergraduates who have subsidized loans, in which the federal government absorbs some of the interest rate. This makes up about a third of undergraduate loans, which are awarded based on economic need.

Far more undergraduates take out unsubsidized loans, whose rates have been at 6.8% since 2007. These interest rates will remain the same for most middle-class undergraduate and graduate students.